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Design Thinking & Innovation With a Focus on Apple

Design Thinking & Innovation With a Focus on Apple. Christopher Staton. Outline & Major Issues. History Design Thinking Competitive Advantage Products as Platforms Open vs. Closed Loop Prototyping, Testing, Refinement Examples Discussion and Multiple Choice Question. History.

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Design Thinking & Innovation With a Focus on Apple

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  1. Design Thinking & InnovationWith a Focus on Apple Christopher Staton

  2. Outline & Major Issues • History • Design Thinking • Competitive Advantage • Products as Platforms • Open vs. Closed Loop • Prototyping, Testing, Refinement • Examples • Discussion and Multiple Choice Question

  3. History • 1976: Introduction of Apple I • 1980: Apple III and IPO • 1983: Apple Lisa • 1984: Macintosh and Ridley Scott directed Super Bowl commercial • 1985: Jobs ousted (starts NeXT) • 1986-1993: Series of product flops • 1994-1997: Attempts at reinvention (IBM and Motorola help with new OS platform)

  4. History • 1997: Jobs reinstated as CEO after NeXT is bought • 1998: iMac, iMovie, Final Cut Pro (the iLife suite would be completed in 2002 with the introduction of iPhoto) • 2001: iPod, Retail stores • 2001-2007: iPod Nano, Shuffle & Touch • 2003: iTunes (market leader for online music)

  5. History • 2005-2007: Intel chips used in Mac Pro and MacBook Pro, while Power Mac, iBook and Powerbook were retired • 2007: iPhone, Apple TV, removed “Computer” from corporate name • 2010: iPad

  6. Design Thinking • Definition: Innovation powered through understanding and the direct observation of what people need and desire, like or dislike • Apple Business Opportunity: the computers used for automating business processes could also become a wide-spread personal device

  7. Design Thinking • Design includes packaging and cords • Apple sells presents within presents • Design is not static • Continued, motivated innovation (colors & materials) • Tool for imagining experiences and giving them a desirable form • As our basic needs are met, we expect increasingly sophisticated experiences • Usability Tests • Mouse, arrows, copy/paste (consumer feedback)

  8. Design Thinking • Apple Business Problem: users would need to be engaged in computers to benefit from them • Business Solutions: • We need to make people love our products so they will spend enough time to learn how to use them • Simplicity is the ultimate sophistication • Apple products noteworthy for what they don’t contain • Design with the user in mind! • Who is using our product and what are they trying to accomplish?

  9. Design Thinking Approaches • Human centered: direct observation • Try early & often: rapid experimentation and prototyping • Seek outside help: co-create w/ customers • Blend projects: short-term incremental vs. revolutionary • Budget to pace of innovation: ideas happen quickly, route to market is long • Find talent: hire from interdisciplinary programs • Design for the cycle: inspiration  ideation  implementation

  10. Characteristics of Design Thinkers • Empathy: imagine world from multiple perspectives • Integrative thinking: rely on analytical processes and see all aspects • Optimism: at least one potential solution is better than existing alternatives • Experimentalism: disruptive innovation vs. incremental • Collaboration: increasing complexity of products displaces the myth of the lone genius

  11. Apple’s Competitive Advantage • Creating a simple, easy-to-adopt solution that is not easy to duplicate • Everything that is easy has already been done • Progress through elimination of clutter • Painstaking thought goes into simplicity • Find the key underlying principle of the problem • Innovation leads to differentiation and competitive advantage

  12. Products as Platforms • First product is designed on architecture that will accommodate development and production of the derivative products envisioned • Benefit to companies • Time and resources for design effort on initial product leveraged for future products • Quicker ramp-up, greater reliability, lower cost (reuse of processes) • Benefit to customers • Less repair, maintenance and service; low learning curve  easy transition through multiple products

  13. Open vs. Closed Loop • Management Decision: Closed Loop • Apple owns entire system • Hardware, software, OS  seamless integration • In a world that celebrates collaboration, open platforms, third party developers, community and transparency, Apple is an outlier • iPhone now has designer platform and a host of dedicated apps

  14. Prototyping, Testing, Refinement • Apple’s Previous Business Process • Marketing, engineering, user experience requirement documents reviewed by executive committee • Design group gets budget and team leader • Proposal submitted regarding how team will meet needs • Estimate figures for release date, ad cycle, pricing details, etc. • Apple’s Current Business Process • If you have an idea, speak up! Then….

  15. Prototyping, Testing, Refinement • Prototype • Rapid, look, feel, interaction • Test • Over and over and over • Refine • Incremental improvements over time • Prototype vs. final product might look like a revolutionary step

  16. Prototyping, Testing, Refinement • Inspiration • Expect success • Ideation • Brainstorming • Implementation • Execute vision

  17. Examples • Bank of America: Keep the Change • Round up debit purchases to nearest dollar • Mimics behavior, saves time, painless, invisible • Gratifying monthly statements showing savings accumulation • Kaiser: I left my shift on time! • Brainstorming and prototyping w/ cross-functional team • Software used to record and recall patient notes quickly • During shift changes, nurses passed on patient info to new nurses in front of patient • Human-centered approach: better care for patients, while nurses left hospital by end of shift

  18. Examples • Apple: We are a team • Changed distribution and factory processes to accommodate manufacturers, saving time and money  in return they continually asked manufacturers what they could do for Apple • Edison: Platforms and Research • Light bulb could not become widespread without an electric power generation and transmission system, so he invented that too • R&D lab broke mold of lone genius and allowed Edison to match needs with technologically feasible projects • Viable business strategy could convert into customer value and market opportunity

  19. Discussion • Since Apple says it does not conduct market research, how have they been able to release so many successful products over the last decade? • When Jobs returned to Apple in the mid-1990s he pared 15 product lines down to three. Why would he do this?

  20. Multiple Choice • Which of the following is NOT a characteristic of a design thinker? • A. Empathy • B. Integrative Thinking • C. Optimism • D. Collaboration • E. None of the above

  21. Works Cited • http://www.girvin.com/blog/?p=5202 • http://hattonconcepts.com/media/papers/leadership/design%20thinking%20at%20Apple.pdf • http://www.unusualleading.com/wp-content/uploads/2009/12/HBR-on-Design-Thinking.pdf

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